medium · National Real Estate Exam financing
A borrower is reviewing a Loan Estimate and notices the APR is 0.5% higher than the interest rate.
What does this discrepancy primarily represent?
- This is a lender error violating the Truth in Lending Act.
- The inclusion of finance charges and fees in addition to the interest
- The interest rate already reflects the lender's built-in profit margin.
- This represents the anticipated inflation rate projected over the loan's life.
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